Wealth tax in Catalonia

in Tax

The property tax is a direct and personal tax, which affects/ falls natural persons’ wealth.
This tax is partially or completely transferred to the Autonomous Communities, so they have, over the estate regulation, competences in order to improve deductions and tax allowances envisaged.

In this article, we will explain you better what is the wealth tax and, in particular, we will focus on Catalonia.

Wealth tax in 2017

Wealth tax, unlike other taxes as inheritance tax is a tax with a temporary character. In 2008, Zapatero eliminated this tax as a message that the Spain economy was very well but, with the economic crisis, the tax was recovered. At first, the wealth tax had only to prolong during 2 years but, we are in 2017 and people have still declare the wealth that they have because it represents a collection of 1.300 millions of euros and for now, Autonomous Communities can not dispense.

There will be no fiscal news on wealth tax in 2017. Taxpayers have to submit the tax during the income campaign using the 714 form.

Who have to submit the wealth tax?

The fact that mark if a person has to declare or not this tax is your wealth income. In the most of Autonomous Communities incomes equals or over 700.000 euros gross per year.

Spanish taxpayers have to submit real estate and rights, whether they are located in Spain or not. However, non-residents have only be taxed for rights located in Spain.

Wealth tax in Catalonia

In Catalonia doesn’t apply any allowance on the fee. This affect the minimum exemption of the community, which in Catalonia is 500.000 euros gross per year instead 700.000 euros gross per year from the other Autonomous Communities. This way, Catalan taxpayers are majority, followed with a large distance from Valencia (17.786) and Andalusia (16.221).

In case of the Community of Madrid, for example, the government offers an automatic bonus of 100%, reducing to 0 the number of taxpayers of the heritage tax.

If you are Catalan or from the other Autonomous Community and you need solve some question about wealth tax, we encourage you to contact with GMTax. We will offer you an expert, individualized and confidential tax consultancy in order to declare the wealth tax correctly.